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Canada At Risk Of Seeing Banking Crisis

The Bank of International Settlements (BIS) has listed some of the economies of the world that could face a banking crisis in the near future. The name of Canada belongs in the top three countries that could end up with a huge banking crisis.

Canada is in a state of banking risk because of its high rates on debts and maxed out credit cards. This statement has come from the BIS despite Canada showing an economic growth at a faster pace last year since 2011. Household borrowing, high debt levels, and the maxed-out credit cards are some of the risk factors that Canada is facing along with the likes of Hong Kong and China.

The study by the BIS came out with some surprising results as well. Debt-ridden Italy did not feature in the country with an economy risk list despite its very slowly growing economy and many bad debts.

As far as China is concerned, it showed an improvement in the credit to gross domestic product gap. This means that the government has taken steps to reduce the risk in the financial sector.

This is a crunch time for Canada as it is the third most indebted country in the world.

Bob Cooper is Canadian Business Tribune''s senior editor. He is also a nationally syndicated newspaper columnist and a bestselling author. He lives in London Ontario and covers the intersection of money, politics and finance. He appears periodically on national television shows and has been published in (among others) The National Post, Politico, The Atlantic, Harper’s, Wired.com, Vice and Salon.com. He also has served as a journalist and consultant on documentaries for CBC and Global News . In 2014, he was the winner of the Society of American Business Editors and Writers' investigative journalism award, and the winner of the Izzy Award for Journalism from Ithaca College's Park Center for Independent Media. He was also a finalist for UCLA's Gerald R. Loeb Award and Syracuse University's Mirror Award. Before becoming a journalist in 2006, Sirota worked in Washington for, among others, U.S. Rep. Bernie Sanders, the U.S. House Appropriations Committee Minority Staff and the Center for American Progress.